World Business Briefing | Europe: France: Vivendi Sells Water Stake

Published: December 10, 2004

Vivendi Universal sold a 15 percent stake in Veolia Environnement for 1.5 billion euros ($2 billion), moving closer to severing ties with the 151-year-old water utility that was the foundation for forming Vivendi. Most of the stake was sold to institutional investors, leaving Vivendi with 5.3 percent of Veolia, the world's biggest water company, it said. The sale will cut Vivendi's debt to about 4 billion euros, compared with 34.9 billion euros in June 2002. The chief executive, Jean-Ren?ourtou, above, said Vivendi, owner of the world's largest music company, would resume paying a dividend. Analysts said Veolia might become a takeover target, and its stock rose 6 percent.